Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Merger or Acquisition (May 2019)
28 slides from Chart Industries's merger presentation, May 13, 2019
Slide 1: Chart Industries, Inc. May 2019
Exhibit 99.1 Chart Industries, Inc. May 2019 © 2019 Chart Industries, Inc. Confidential and Proprietary © 2019 Chart Industries, Inc. Confidential and ProprietaryExhibit 99.1 Chart Industries, Inc. May 2019 © 2019 Chart Industries, Inc. Confidential and Proprietary © 2019 Chart Industries, Inc. Conf
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements made in this presentation are forward-looking statements within the meaning of the Private Securities Forward Looking Statements Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company’s business plans, includi
Slide 3: Leadership Team
Leadership Team Jill Evanko Jeff Lass Chief Executive Officer Chief Financial Officer Joe Belling Hans Lonsain Grady Walker Aaron Bridges President, Chart E&C President, Chart D&S East President, Chart D&S West Commercial Officer 2 © 2019 Chart Industries, Inc. Confidential and ProprietaryLeadership
Slide 4: Leading Supplier of Mission Critical Equipment & Systems
Leading Supplier of Mission Critical Equipment & Systems Energy & Chemical Distribution & Storage 2 1 § Offer a complete portfolio of cryogenic distribution and § Supply Brazed Aluminum Heat Exchangers (BAHX), storage equipment Air Cooled Heat Exchangers (ACHX) and Cold Boxes § Spearhead innovation
Slide 5: 2018 End-Market Exposure
2018 End-Market Exposure Consolidated E&C Cryobiological, HVAC, pow er and 8% refining, 19% Natural gas processing, 24% Packaged gas, 19% Industrial gas, 3% LNG, 11% LNG, 16% Natural gas processing, 67% Industrial gas, 1% Bulk industrial gas, 25% HVAC, pow er and refining, 7% D&S East D&S West Packa
Slide 6: Staying Focused on Our Strategy
Staying Focused on Our Strategy Build upon our core competency of cryogenic engineering and product expertise in our industrial gas and energy applications Signed agreement to Acquisition of Resegmentation purchase Acquisition of Purchase of Sale of CAIRE Hudson and Leadership Harsco’s Air-X- VRV Me
Slide 7: Our Focused Gas to Liquids Offering
Our Focused Gas to Liquids Offering Re- Exploration, Processing/ Lifecycle Value Proposition/ Treatment Transportation Storage Production & Pipeline Application Liquefaction gasification Services ACHX Orca Microbulk Engineered Tanks Ambient Vaporizers Installation & Startup N2 Dosing Powered Vaporiz
Slide 8: Harsco Air-X-Changer Products and Applications
Harsco Air-X-Changer Products and Applications 7 © 2019 Chart Industries, Inc. Confidential and ProprietaryHarsco Air-X-Changer Products and Applications 7 © 2019 Chart Industries, Inc. Confidential and Proprietary
Slide 9: Compression Dynamics
Compression Dynamics • Projected increasing natural gas demand Overall Gas • LNG and Mexico exports add to the increasing demand Demand & • Largely gas price agnostic; activity driven by production and the need to move gas Production • Permian & NE gas production projected to increase ~25% in next 4
Slide 10: Harsco Air-X-Changers Deal Economics & Synergies
Harsco Air-X-Changers Deal Economics & Synergies • $592M purchase price • Expected $90M of tax benefits • 9.9X forecasted 2019 EBITDA multiple Transaction • Gross margin, operating margin and adjusted EPS accretive in year one Specifics • Strong free cash flow generation • Accretive to Chart ROIC by
Slide 11: Future Segments 2019F Full Year Pro Forma
Future Segments 2019F Full Year Pro Forma Post Close of Harsco AXC Acquisition E&C Cryogenics E&C FinFans D&S East D&S West BAHX / Cold Boxes ACHX / Fans Global Commercial Team Revenue = $315M Revenue = $155M Revenue = $545M Revenue = $490M Backlog = $196M Backlog = $250M Backlog = $320M Backlog = $
Slide 12: Business Update Q2 2019
Business Update Q2 2019 Updates are in Bold Italics Industry Trends Year to Date Activity • Increased petrochemical activity • Booked Venture Global’s Calcasieu Pass order ($135M) • Big LNG operator activity • Booked Golar Gimi FLNG order ($20M) • Driftwood received DOE approval • Announced IPSMR®+
Slide 13: LNG Supply / Demand
LNG Supply / Demand Demand forecast to 2025 Supply/Demand Deficit Forecast Source: Wood Mackenzie; 2018 World LNG Report, published by IGU and HIS Market; Scotia Howard Weil estimates. • Current buildout cycle serving upcoming 2022-2023 supply-demand deficit • Expect ~100 MTPA of related orders in 2
Slide 14: Where we play in LNG
Where we play in LNG *Source: Scotia Howard Weil 13 © 2019 Chart Industries, Inc. Confidential and ProprietaryWhere we play in LNG *Source: Scotia Howard Weil 13 © 2019 Chart Industries, Inc. Confidential and Proprietary
Slide 15: IPSMR®
IPSMR® 14 © 2019 Chart Industries, Inc. Confidential and ProprietaryIPSMR® 14 © 2019 Chart Industries, Inc. Confidential and Proprietary
Slide 16: IPSMR®+
IPSMR®+ Chart’s IPSMR®+ process provides as much as 8% increased efficiency over IPSMR® Requires approximately 25% less plot space than conventional pre-cooled liquefaction technologies IPSMR®+ has been evaluated by two international oil companies and determined it continues to be the most efficient
Slide 17: Big LNG Order Opportunities: 2019
Big LNG Order Opportunities: 2019 Number Project Chart Customer Operator Size Chart Content Expected Timing of Chart orders 1 - Calcasieu Pass BHGE Venture Global 10 MTPA 18 cold boxes, BAHX Throughout 2019 BOOKED 2 – Gimi (Tortue) Black & Veatch Golar 3.75 MTPA 4x Cold boxes, BAHX 1H 2019 BOOKED st
Slide 18: 2019 Updated Guidance, with AXC
2019 Updated Guidance, with AXC Prior Full Year 2019 (Pre Harsco Updated Guidance Includes: Full Year 2019 (Post Harsco AXC) AXC) • Harsco Air-X-Changer 2H 2019: Assumes July 1, 2019 close of the Sales Sales acquisition, subject to closing $1.41B - $1.46B $1.29B - $1.34B conditions Inclusive of 2019
Slide 19: 2020 Outlook
2020 Outlook (1) Ref # Description Revenue ($M) Adjusted EPS As described at 1 2020 Base Outlook as of June 2018 $1,380 - $1,400 $3.60 - $3.70 June 7, 2018 Investor Day 2 Calcasieu Pass, Gimi, ACHX for Bechtel 125 0.90 - 1.00 3 Additional restructuring completed 0.15 - 0.20 4 +VRV, - CAIRE, +/- Othe
Slide 20: M&A: A Way to Accelerate Growth
M&A: A Way to Accelerate Growth Prioritize Key Market Opportunities: Acquisition Criteria: § Strong level of strategic fit SERVICE & TEMPERATURE REPAIR § High degree of leveragability EXPANSION BUILDOUT (specific and attainable synergies) § Proven growth and profitability § Reasonable price expectat
Slide 21: Corporate Responsibility
Corporate Responsibility As a responsible corporate citizen, Chart’s belief is that financial performance and responsibility for our environment, our employees and the global communities we touch are inextricably linked. Ethics It is our number one priority to build and support a Chart culture that
Slide 22: Chart Investment Highlights
Chart Investment Highlights Leading diversified industrial Operate in attractive, growing global manufacturer with diverse markets and broad product offering Innovative technical expertise Cross-operating segment scale and and reputation collaboration Longstanding relationships with Industry leading
Slide 23: Appendix: Q1 2019 Results
Appendix: Q1 2019 Results © 2019 Chart Industries, Inc. Confidential and Proprietary © 2019 Chart Industries, Inc. Confidential and ProprietaryAppendix: Q1 2019 Results © 2019 Chart Industries, Inc. Confidential and Proprietary © 2019 Chart Industries, Inc. Confidential and Proprietary
Slide 24: Q1 2019 Order Activity
Q1 2019 Order Activity All results reflect continuing operations E&C D&S East D&S West (13%) +182% +32% $264 $131 $114 $83 $94 $63 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 • Big LNG • Industrial gas • Industrial gas • Air Cooled Heat Exchangers • LNG fueling systems • Long term agreements • P
Slide 25: Q1 2019 Backlog
Q1 2019 Backlog All results reflect continuing operations Consolidated E&C $568.2 $253.0 $213.3 $476.9 $733.8 $410.5 $- $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 $- $100.0 $200.0 $300.0 $400.0 $500.0 December 2018 March 2018 March 2019 December 2018 March 2018 March 2019 D&S East D&S W
Slide 26: Q1 2019 Margin Expansion Actions
Q1 2019 Margin Expansion Actions ($M) Facility Headcount Price Product Line Projected Projected Reduction / Reduction / Increases and Rationalization Incremental OpInc Impact Consolidation Other Supply Chain (1) Annual to 2019 Versus (1) Savings Prior Guide Announced Absorbed E&C consolidation from
Slide 27: Q1 Adjusted EPS
Q1 Adjusted EPS $ millions, except per share amounts Q1 2019 Q1 2018 Change V. PY Continuing Operations Net income $0.9 $4.2 ($3.3) from continuing operations Reported EPS $0.03 $0.13 ($0.10) 1 Restructuring and transaction-related costs 0.23 0.05 0.18 2 Integration and Step Up Costs 0.09 - 0.09 3 O
Slide 28: www.chartindustries.com
www.chartindustries.com © 2019 Chart Industries, Inc. Confidential and Proprietary © 2019 Chart Industries, Inc. Confidential and Proprietarywww.chartindustries.com © 2019 Chart Industries, Inc. Confidential and Proprietary © 2019 Chart Industries, Inc. Confidential and Proprietary